Global Iron Ore Market to Reach 2.27 Billion Metric Tons by 2019

According to Technavio’s latest report, the global iron ore market outlook is expected to grow at a CAGR of over 3% during the forecast period.

The global iron ore market is growing at a steady pace during the forecast period. Primarily, iron ore is consumed in steel making. Approximately 98% of iron ore produced is used in the steel making process. Thus, the market is driven by the demand from sectors such as construction, infrastructure, transportation, and related industrial applications.

The major iron ore producing regions are Australia, and Brazil. Brazil hosts five of the largest iron ore mines, Australia five, and Africa one. The Australian iron ore sector is export-oriented and exports approximately 80% to 90% of its production.

According to Chandrakumar Badala Jaganathan, a lead analyst at Technavio for metals and minerals research, “Approximately 70% of seaborne iron ore demand is from China, thus making Chinese imports one of the primary price determining factors in iron ore.”

In this report, Technavio covers the present scenario and growth prospects of the global iron ore market outlook for 2015-2019. The report also presents the vendor landscape and a corresponding detailed analysis of the top five vendors operating in the market. The market is segmented into the following four regions:

APAC

Europe

Americas

MEA

APAC: largest market for iron ore

The iron ore market in APAC is expected to reach 1.70 billion metric tons by 2019, growing at a CAGR of over 3% during the forecast period.

The iron ore market in APAC is expected to grow at a fast pace during the forecast period. The market is driven by an increase in demand for iron ore from the infrastructure, transportation, and manufacturing sectors in this region.

Australia, China, and India are the major producers of iron ore in this region. The economic growth in China has resulted in an unprecedented demand for iron ore, which has led to increased production in Australia, to meet this demand. The iron ore producers in Australia are continuously expanding mines and shipping ports. China, Japan, and South Korea are the major importers of iron ore in this region and use it mainly for steel production.

Europe: market to grow at a CAGR of 3%

The iron ore market in Europe is expected to exceed 338 million metric tons by 2019, growing at a CAGR of over 3% during the forecast period.

Technavio expects the iron ore market in Europe to grow at a moderate pace during the forecast period. The major iron ore mining companies in this region continue to reinvest their profits in the development of mines.

Germany, France, Italy, and the UK are the major importers of iron ore in this region. East European players in Russia and Ukraine continue to be dominant in the iron ore market. “However, the iron ore market in this region is expected to struggle due to weak global iron ore prices,” says Chandrakumar.

Americas: steel industry to boost growth of iron ore market

The iron ore market in the Americas is expected to exceed 174 million metric tons by 2019, growing at a CAGR of almost 3% during the forecast period.

The iron ore market in the Americas is driven by the infrastructure revival in North America. Also, the steel industry, in Canada and the US, will grow at a robust pace during the forecast period which will boost the demand for iron ore.

Brazil dominates one-third of the iron ore exports in the world. The major iron ore producing companies in Brazil are Vale, CSN, Samarco, MMX, and Usiminas.

MEA: potential untapped sources for iron ore

The iron ore market in MEA is expected to exceed 60 million metric tons by 2019. Technavio expects the market to grow at a moderate pace during the forecast period.

South Africa, Algeria, and Mauritania are the major iron ore producing regions in Africa. Central and West Africa are witnessing a growth in iron ore exploration and mining. However, there are many countries in Africa with unmined iron ore deposits. Also, reserves with high-quality iron ore have been discovered in Iran, which will contribute to the production of iron ore in this region.